The United States has purchased Argentine pesos, in the latest step to stabilize that country\u2019s financial market. – Luis Robayo\/AFP\/Getty Images <\/p>\n
The Trump administration has finalized plans to provide a $20 billion lifeline to Argentina, Treasury Secretary Scott Bessent said Thursday via social media. Additionally, the United States \u201cdirectly\u201d purchased Argentine pesos, Bessent said, a rare move that marks the latest step in an attempt to stabilize the country\u2019s financial market.<\/p>\n
Bessent did not specify how many pesos the United States had purchased.<\/p>\n
Representatives from the Treasury Department did not immediately respond to CNN\u2019s request for comment.<\/p>\n
\u201cThe U.S. Treasury is prepared, immediately, to take whatever exceptional measures are warranted to provide stability to markets,\u201d Bessent wrote.<\/p>\n
The $20 billion lifeline framework Bessent announced is known as a \u201ccurrency swap,\u201d which gives Argentina\u2019s central bank the ability to exchange pesos for US dollars with the Treasury. Doing so can help stabilize its financial markets by injecting more liquidity.<\/p>\n
The Argentine peso has significantly devalued against other currencies since President Javier Milei, a close ally of President Donald Trump, suffered major defeats in local elections, raising doubts that he\u2019ll hold on to his legislative majority in midterm elections later this month.<\/p>\n
Trump has praised the chainsaw-wielding libertarian and endorsed<\/a> his reelection.<\/p>\n But the Trump administration\u2019s attempt to rescue Milei\u2019s economy has been met with some criticism<\/a>, given Trump preaches an \u201cAmerica First\u201d agenda.<\/p>\n Bessent defended the administration\u2019s move, saying, \u201cArgentina faces a moment of acute illiquidity. The international community \u2014 including @IMFNews<\/a> \u2014 is unified behind Argentina and its prudent fiscal strategy, but only the United States can act swiftly.\u201d<\/p>\n This is a developing story and will be updated.<\/p>\n